The banking industry is Australia is trying not to be dependent on foreign funds for its operations amidst the uncertain markets abroad. During a tree day Senate inquiry in Canberra, it was declared to expect a benign credit environment which was prominent before the global financial crisis.
According to the Chief of the Australian Bankers’ Association Steven Munchenberg, there has been a rise in the average cost for funds in offshore markets by about 140-150 basis points since 2007.
It has been noticed that the banks in Australia has seen drop in their credit ratings to AA-minus due to their dependency on offshore wholesale funding.
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